The Fallon Company manufactures a variety of handcrafted bed frames. The companys manufacturing activities and related data for the current year follow.

Activity cost pool	Estimated cost	Cost driver used as allocation base	Estimated volume for cost driver
Materials handling	$400,000	Number of parts	800,000 parts
Cutting	1200,000	Machine hours	40,000 hours
Assembly	3000,000	Direct labour hours	150,000 hours
Wood staining	1320,000	Number of frames stained	60,000 frames
Total cost	5,920,000

1. Compute the ABC activity rate for each activity.
2. Suppose that a single indirect cost rate based on Machine hours was used to allocate indirect costs, calculate the indirect cost rate?